Knowledge Development Box to encourage more innovation
The higher the proportion of R&D in a company, the greater the proportion of income that may qualify for a reduced tax rate
The wait is over! Since Minister for Finance Michael Noonan announced in Budget 2015 that Ireland would introduce a “best-in-class” Knowledge Development Box (KDB), there has been a lot of speculation about how low he would go. Budget 2016 announced that the rate of tax which will apply for income qualifying under the new KDB will be 6.25 per cent. More details on how the KDB will work in practice will be contained in the Finance Bill (to be published on Thursday, October 22). The objective of the KDB is to provide a highly attractive tax rate for income generated from commercialising R&D/intellectual property.
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